Wednesday, August 7, 2013

Three areas of value addition in the Production support outsourcing engagement


Area 1: Providing Faster, Cheaper and Better services at an aggregate level.

Outsourcing is all about managing risks while controlling the cost.

-       During transition, the business is at risk and the environment is wobbly. The biggest value addition at this point is to get to Steady State at earliest while managing the related risks
-       The perception is that curtailing cost may compromise the quality of the work. A demonstration of additional benefits that can be brought along with the main stream support, make this a valuable proposal
-       Usually, in a legacy environment or in an existing outsourced environment, introducing processes, metrics and good governance can bring distinguished value to the customer.

Area 2:  Early Transformation benefits resulting in better Productivity gains

Usually, transformation is attempted at the later part of the engagement and most of the time it is almost expected. The key here is to achieve this early in the game. The metrics that is presented as part of the support engagement, can result in multiple transformational ideas.

Area 3: Exceeding expectations of attaining stability

The risk of instability in the business environment and failure is the area of biggest concern. Every engagement assumes and expects to attain stability in certain period of time. Attaining it before this time period creates good value add for the customer. The key here is to show these progressively in phases.

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